BoE holds at 0.5 per cent

INTEREST rates in the UK have now been kept at a historic low for over two years, after the Bank of England voted for no change yesterday.

The Bank’s monetary policy committee voted to keep rates at their “emergency” low of 0.5 per cent. Its policy on quantitative easing also remains unchanged.

Despite inflation of 4.4 per cent – well above the 2.6 per cent in the Eurozone – Mervyn King’s committee continues to resist any normalisation of the Bank rate.

“Nevertheless, we continue to expect the committee to hike in the next few months,” said Citigroup’s Michael Saunders.